Market Trends of MEA Temperature Sensors Industry
This section covers the major market trends shaping the MEA Temperature Sensors Market according to our research experts:
Automotive industry to Show Significant Growth
- The United Arab Emirates has one of the robust automotive sectors in the GCC due to factors such as low import tariffs and low fuel costs. Dubai is expected to spend Millions of Dirhams on incentives to have 42,000 EVs on its streets by 2030. General Motors expects to see increased sales in the region with the launch of its Chevrolet electric vehicle. Besides, Dubai Police also operates a small fleet of Bolt EVs.
- The government has announced that it aims to invest USD 75 billion by 2025 in the country's new industrial manufacturing sector and that the manufacturing sector would contribute 25% toward the country's GDP by 2025. General Motors is planning to launch 20 new electric vehicle models globally by 2023 and intends to market the UAE product line. The UAE government targets up to a 15% reduction in carbon emissions by 2020 and a 20% adoption of EVs within its fleet, making the automotive sector one of the prominent users of temperature sensors in the region.
- Moreover, The automotive industry has pushed the government to create a market for electric vehicles in South Africa. Nissan and BMW have been pushing the South African government to reduce the import duty on electric vehicles to make them more affordable. In September 2019, GridCars, one of the largest installers of public electric vehicle charging stations in South Africa, completed its national EV highway rollout that connects significant cities along some of South Africa's busiest highways. In November 2019, Airports Company South Africa (ACSA), in partnership with BMW SA, announced EV charging stations across three ACSA's airports in the country. Such developments will make the automotive sector a significant end-user of temperature sensors.
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Oil and Gas to Hold the Highest Market Share
- The region is witnessing the continuous discovery of new oil and gas wells while the old and underutilized ones are rejuvenated. For instance, in November 2019, the government-owned company, Abu Dhabi National Oil Co. (ADNOC), announced a significant rig fleet expansion program, which is expected to add dozens of rigs by 2025. The company also claims to have increased its gas reserves to about 273 trillion cubic feet (TCF), owing to the discovery of unconventional gas deposits in the region. Such increasing developments are driving the demand for temperature sensors.
- On the other hand, Saudi Arabia is one of the world's largest producers and exporters of petroleum liquids, which is currently the world's second-largest crude oil producer, right after Russia. The Saudi Arabian economy remains heavily dependent on oil- and petroleum-related industries, including petrochemicals and petroleum refining, making the oil and gas sector one of the prominent users of temperature sensors in the country.
- Moreover, Kuwait signed a USD 600 Million offshore exploration contract with Halliburton to drill six high-pressure, high-temperature (HP/HT) exploration wells in the next two to three years. This new offshore exploration project with Halliburton could help add around 100,000 barrels of oil per day in the future. The offshore exploration work was anticipated to start in mid-2020, with the first rig anticipated to come by July 2020 and the second rig by January 2021. Such developments are expected to drive the market's growth positively.
- New exploration activities are being witnessed in Oman, which is expected to impact the market positively. For instance, BP and Eni signed an E&P agreement for Block 77. This is anticipated to result in an 8.0% increase in drilling activity. In December 2020, Oman created a new upstream oil and gas company known as Energy Development Oman (EDO), which will take a stake in the country's more established energy company, Petroleum Development Oman (PDO), and develop its projects.
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